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A Broken Health Care System

Stay Well Afford Care Secure Coverage Herb K. Schultz Senior Advisor to Governor Arnold Schwarzenegger. A Broken Health Care System. 6.7 million uninsured Stressed emergency rooms “The hidden tax” Rising health care costs Chronic illness; poor health choices Medical errors

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A Broken Health Care System

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  1. Stay Well Afford Care Secure CoverageHerb K. SchultzSenior Advisor to Governor Arnold Schwarzenegger

  2. A Broken Health Care System • 6.7 million uninsured • Stressed emergency rooms • “The hidden tax” • Rising health care costs • Chronic illness; poor health choices • Medical errors • Financial strain, bankruptcy

  3. Overall Approach • Policy Bill • Financing by Ballot Initiative

  4. Health Care Security and Cost Reduction Act • Prevention/Health Promotion/ Wellness • Shared Responsibility and Shared Benefit/Coverage for All • Cost Containment/Affordability

  5. Affordable and Accessible Health Coverage for California • Requires all Californians to take responsibility for their health coverage (Individual Mandate). • Guarantees that no Californian will be turned away from buying insurance based on age or medical history (Guaranteed Issue). • Spreads responsibility across individuals, government, hospitals and employers (Shared Responsibility). • Makes coverage more affordable for individuals and families through tax credits and subsidies. • Helps keep hospitals and emergency rooms open by increasing Medi-Cal reimbursement rates. • Allows individuals to choose their health coverage and keep their current insurance.

  6. Shared Benefit GOVERNMENT Healthy, productive & economically competitive state EMPLOYERS Affordable coverage Healthy, productive workforce DOCTORS & HOSPITALS Expanded insured population Fair compensation INDIVIDUALS Access to affordable coverage Health care security Healthier CA HEALTH PLANS Expanded market Fair compensation

  7. Shared Responsibility GOVERNMENT Promote functional health care market Provide access to affordable coverage Fairly compensate Medi-Cal providers EMPLOYERSSupportemployee access to affordable coverage DOCTORS &HOSPITALS Provide affordable, quality care Share cost savings INDIVIDUALS Obtain health coverage HEALTH PLANS Guarantee access to affordable coverage Pass along savings

  8. Historic Coalition of SupportRepublican Governor and Democratic Speaker 2,000+ Meetings: • Consumers – AARP, Consumers Union, Health Access, CPEHN • Business – Small, Medium, Big • Labor – SEIU, AFSCME, Carpenters • Providers – Hospitals, Doctor Groups, Nursing Groups • Insurers – Kaiser, Blue Shield, Health Net

  9. Legislative Action • Assembly – Passed December 17, 2007 • Senate Health Committee – Did not pass January 28, 2008 • Budget Deficit • Financing/Cost of Plan

  10. Where Do We Go From Here? • Two-Phase Comprehensive Approach • Phase I – This Year (Legislative) • Cost Containment • Prevention • Consumer Protection • Phase II • Coverage Expansion • Financing (Ballot Initiative)

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